In this scenario, we would likely suggest creating a substantial investment account that would leverage dollar-cost averaging over a two-year period. Systematically investing in this account monthly with additional money coming directly from the client’s salary could potentially mitigate immediate market risk. In addition, automating future investments directly from their checking account could help build a solid foundation of well researched assets without any extensive work on the part of the client.
Our next recommendation in the process would be to assess any upcoming large lifestyle expenditures (like a new home). With something like that on the horizon, we would likely review their overall stock allocation to determine if some of it could be cashed in. In overvalued markets, we could also suggest additional downside protection through something like a fixed index annuity which would synthetically create a pension through its lifetime income guarantee.